By Jason Theodorou

Retail sales volumes saw an increase due to the World Cup in June, with sales of electrical goods driving a 0.7% monthly rise, according to data from the Office for National Statistics (ONS).

Household good stores saw sales increase by 1.6%, and 6.1% on the year, with football fans investing in major electronics in preparation for the tournament in South Africa.

Retailers attracted consumers with sales, with the retail price deflator - an indicator of price inflation - decreasing to 1.3% on the year. Coming in at half the level seen in May, this figure will offer some reassurance to the Bank of England.

Retail sales showed a marked increase, with the exception of fuel, with a 1% rise on the month and a 3.1% rise on the year. Fuel sales fell by 15.9% in terms of volume, compared with the same month the previous year.

Food sales increased by 0.6%, a dip following the 0.8% increase seen in May.

James Knightley, economist at ING, said: 'UK retail sales are proving to be remarkably resilient… it therefore appears the World Cup boosted sales, despite falling consumer confidence and Budget uncertainty with regards to taxes and government spending'.

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